Case Study Analysis

Table of Contents

Executive Summary
Overview
The Problem
The solution
Highlights

Introduction
Brief
Purpose
Report structure

Case Analysis Question/discussion

1.Supply Chain Overview
● Pitfalls of woodland current supply chain operation
2.Supply Chain Relationship
● Process model for forming logistics relationship
● Relationship between Woodland and Home Decor
● Relationship between Woodland and Home Living
3.Bullwhip effect:
● Causes
● Consequences
● Home Decor and the bullwhip effect
4.The proposal
5.Digital Supply chain
● Traditional VS digital supply chain
● Challenges of digital transformation of woodland's supply chain
6.Sustainability
● Benefits
● Quick jeans system role

Recommendations/Conclusion
Executive Summary:
There is a brief section which describes a business proposal being prepared in terms of giving
special or main importance towards logistics and supply chain management.
The problems which they are going to solve are
conventional methods and techniques of businesses and agreements, fear of investing in new
businesses and agreements whether its financial investment or struggle investment,
absence of modern techniques and technologies in the firm preparing proposal for an agreement.
The solutions to the problems John Smith firm was going to follow are adaptation to time-based
logistic strategies, the arrangement having potential to improve product availability for in-store
customers while reducing overall inventory, updating with modern thinking of business and getting rid
of conventional strategies and typical performance, be familiar with time-based logistics and also
making the workers familiar to it and bring it in practice within the firm.
Here you can highlight the strengths and opportunities of your firm by determining your specific
place in the marketplace and highlighting the achievements of the firm.

Introduction:
The major business propositions for Woodland and HomeDecor to consider in evaluating this
proposal.The major business proposition for Woodland and HomeDecor to consider in evaluating
this proposal is to establish strategic collaboration between retailer and manufacturer in order to
create the best exercises for logistic system as well as reduce costs and stock level.As a leading
company in home decorating industry, HomeDecor is emphasizing on keeping the low costs but also
not compromise the premium service (EDLP strategy),they are looking to further grow their
businesses with the time-based logistics strategies to lessen overall channel expenditures and bid
buyers quality products. HomeDecor has been concerned about the lagging of furniture industry in
terms of logistics operations, and they have a great interest in collaborating directly with
windowfashions manufacturer which is believed to be a solution to improve profitability.On the other
side, Woodland is the reputed organisation with the leading-edge logistics strategies in distribution
channels. The collaboration with HomeDecor would also result in implementation of a customised
delivery system which could be difficult-to-duplicate competitive advantage over its competitors.
Another crucial business recommendation to assume is the potency of the time-based logistics
techniques. Hence, Woodland and HomeDecor must consider the several factors which need to
implement the program.

The purpose of the report is to address the importance of time-based logistic systems.
The report structure is according to the providing guidelines which includes executive summary,
introduction, case analysis question, recommendations and the various points need to be addressed
within these highlights. The fundamentals of this report are the case analysis questions.

Case analysis questions/discussion:

1.Supply Chain Overview:

Raw materials

Suppliers

Manufacturing

DC

Retailer

Consumer

The above model shows the basic view of woodlands' supply chain starting from the upstream
inbound logistics all the way to their downstream, outbound logistics. This consists of woodland'
sprocess starting from their main source of raw materials, their sub-component manufacturers, final
good manufactures, warehousing/transportation and ends with the distribution of finished
products.Woodland currently has two manufacturing facilities and six regional distribution centers.
One of the manufacturing facilities is located in Tasmania, while the other is in China. The
Tasmanian facility produces fabric-covered items, such as cellular shades. The plant in China
produces wooden blinds. The six distribution centers are located throughout Australia with one
adjacent to the manufacturing facilities. Orders are received from customers electronically as
as well as by phone through sales representatives. Only 40 percent of Woodland’s customers are
electronically linked to the ordering system.

The pitfalls of woodlands' current current supply chain operations (inventory management and
replenishment process are:
1. Only 40% consumers are electronically linked to the ordering system.
2. Improper inventory control
3. No back plan:
4. Lack of transparency
5. Lack of traceability
6. Big focus

2.Supply Chain Relationship:

Process model for forming logistics relationship:

a)Relationship between woodland and Home decor:

HomeDecor had a relationship with decorators, a customer group that
Woodland had been targeted under its reorganization plan. Woodland’s image was as a value leader
of good quality Window fashions at a low price. Attracting professional decorators to its products
would definitely enhance Woodland’s image. Furthermore, Woodland hoped to have some direct
contact with professional decorators to get firsthand information on upcoming fashion trends.
Finally, an exclusive arrangement with HomeDecor appeared critical for the future.
Window fashions manufacturing is heavily consolidated among a few key players, meaning stiff
competition. While the home decorating industry remains heavily fragmented, HomeDecor is a
leader and appears positioned to grow faster than competitors. Even though HomeDecor
presently only has ten percent of the market share, they have unlimited development capacity and
are frequently correlated to as the Walmart of the home decorating industry.

b)Relationship between Woodland and 'Home living':

The long-term relationship with Home & Living that had prospered for 50 years was clearly becoming
a potential problem for Woodland. Relying on Home & Living had created a false sense of security,
and when Home & Living suffered financially during the recessions, Woodland also suffered.
Furthermore, Home & Living’s reputation as a quality retailer was beginning to decline. In fact, it was
getting the reputation for providing low-quality, outdated products. Top management was afraid to
launch another close relationship that tied Woodland’s success to another company.

3.Bullwhip effect:
The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain
inefficiencies. It implies to heightening swings in inventory in reaction to changes in customer
demand as you go further up the supply chain.

Causes:
● Promotional sales
● Volume and Transportation Discounts
● Inflated orders
● Variation of demand
● Long cycle times
Consequences:
● Excessive inventory
● Uncertain production planning with excessive revisions
● Insufficient or excessive capacities
● Bad customer assistance due to elusive products or lengthy backlogs
● High costs for corrections such as expedited shipments or over Tim

Home decor and the bullwhip effect:

The team has been considering applying time-based logistics strategies to window fashion products.
Such an agreement had the potential to enhance product availability for in-store consumers while
decreasing widespread inventory. HomeDecor’s close relationship with professional decorators
required continued attention to improve its profitability and to ensure long-term growth. Interior
decorators need convenient and exacting service, and HomeDecor feels that time-based logistics
applied to window fashions could be an important step to improving profitability to ensure long term
growth and improve competitiveness.

HomeDecor’s main concern is that the window fashion industry as a whole appears to
be trailing other industries in terms of sophisticated logistics operations and use of technology in the
supply chain. For example, The window fashions industry has invested little in information
technology and maintains high inventories throughout the channel, including at the retail level. The
results other firms reported for their innovative logistics applications gave HomeDecor a new insight
into how an alliance with a window fashion manufacturer might create a best practice distribution
system with lower costs and less inventory.

4.The proposal:
a)Discuss how ‘Time-Based logistics’ (like JeanJean’s system) can be processed for
order fulfilments from the Woodlands' distribution centers to HomeDecor stores.

In JeanJean’s system, retailers play a major role. When a product sells in a retail store,
The barcode on that product is scanned, and the POS information is transmitted electronically to
JeanJean. POS data detail the size, colour, and style of product sold and are transmitted directly to
JeanJean’s manufacturing facilities where they are used to derive production schedules in response
to consumer sales. To the Woodland team, it looked as though information was being traded for
inventory. Product replenishment was exact and done within days of the sale depending on each
retail store’s volume. The time-based system was flexible and able to accommodate a variety of
different replenishment styles based upon individual retail customer requirements.

b)What are the benefits and barriers (short and long-term) to “the proposal” for both
Woodland and HomeDecor? What other factors need to be considered to improve the current
proposal for long-run viability? (5 marks)

The short and long-term benefits of the proposal include faster delivery and better inventory control,
an innovative new way of handling furniture, and the ability to work with decorators, which the
company wanted to do. The Long term advantages are Constructing a powerful and more valid
business partnership by making the switch and consecutive development sustainability. One of the
other benefits of this proposal is that it would enable both companies to increase their sales and
profitability. By accepting the proposal, both companies would be able to lessen the total channel
commands as well as provide consumers with bonus product availability. By adopting the proposal,
both companies would be able to reduce the total channel costs as well as provide customers with
premium product availability. Woodland would profit by vacating a union with a retail firm that is in
economic problem .

Moreover, the image of the company would be greatly enhanced. A major barrier that Woodland
would encounter in executing the new strategy is the evidence that it would take a long time period
to comprehend the expected privileges of the time-based logistic capacity. The proposal would
benefit HomeDecor by providing shorter timetables that would not only reduce the cost of
rescheduling but also improve cash flow and efficiency in product delivery. The company will have
the chance to have independent distributors with delivery programs that are flexible. A major
obstacle that Home Decor might confront is the opposition to change. Owed to the reality that this is
a firm that is well-known and has been earning enormous profits, the administration and even
employees may characterize great opposition to change. Some may be opposed to the idea of
partnering with Woodland Company.

5.Digital Supply Chain:

Application of technology to digitize and
analyse data in an accurate and rapid
manner to improve supply chain
performance. (CSCMP, Supply Chain
Quarterly 2019)

Traditional VS digital supply chain:

HomeDecor’s main concern is that the window fashion industry as a whole appears to be trailing
other industries in terms of sophisticated logistics operations and use of technology in the supply
chain. For example, The window fashions industry has invested little in information technology and
maintains high inventories throughout the channel, including at the retail level. The results other
firms reported for their innovative logistics applications gave HomeDecor a new insight into how an
alliance with a window fashion manufacturer might create a best practice distribution system with
lower costs and less inventory.

The window fashions sold include (1) cellular shades in various designed, plated fabrics; (2) wood
blinds in a variety of colours and finishes; (3) fashion verticals made in fabrics or PVC; and (4)
standard aluminium mini
blinds. Woodland is one of the three manufacturers that currently supplies the first three types of
window fashions sold at HomeDecor.
HomeDecor is also the first major player in its market to offer online ordering, their competitors
online/internet pages offer product and store information only.

The woodland has to detail it's operations. Then an appropriate time-based system would need to be
defined and compared to current operations to isolate changes necessary to offer excellent service
support. A modified system would also need to be outlined and the cost and benefits determined.
The problem of co-occurrence of current and time-based reaction capabilities was also a suspicion.

Challenges of digital transformation of woodland's supply chain:

● Financial investment
● Increase in the overall cost of doing business with all customers
● Unexpected delays and long discussions between team members
● IOT, mobile connectivity, Functional automation may be difficult to understand by some team
members or customers.

6.Sustainability:
In a sustainable supply chain, financial action must be spotted within environmental and social
boundaries or thresholds. Certainly, adequate financial performance is a key characteristic of a
sustainable supply chain. However, once environmental and social thresholds are set, they arrive
first.

Benefits of sustainable supply chains:

● Protecting Against Reputational Damage.
● Reducing Environmental Impact and Costs.
● Improving Continuity of Supply.
● Innovating Products and Services.
● Creating Partnerships or Global-Industry Standards.

Quick jeans system role:

Time based logistics like quick jeans is the right strategy for both companies.This strategy appears
to offer both companies a significant upside potential. HomeDecor will be able to offer more efficient
service to customers. Woodland will get an exclusive partnership with an emerging force in this
industry. Both companies will also reduce inventories throughout the system. The proposal also
creates a collaborative alliance and increased communications between HomeDecor and Woodland
and it brings upon an exclusive distribution arrangement for both companies. It is recommended that
both companies should look at the financial aspect when performing this strategy. However, there is
no reason to turn down this offer regarding a promising scenario for both companies in the future
after operating a time-based logistics strategy.

D.Recommendation/Conclusion:
If I were Woodland’s top administration, I would suggest detailed research on the proposed
technique. This is because neither Woodland nor Home Decor Company has ever attempted using
the strategy. It is therefore not an assurance that the anticipated benefits would be attained. Home
Decor Company has just been uncovered to the new strategies and is planning to give it an attempt.
It is always obvious that even though a policy may appear to work at a given corporation, the similar
results may not be attained when the same strategy is utilized in another company. It is therefore
crucial to conduct intensive research and consider the
outcomes from different viewpoints.
Home Decor is evaluating forming a union with a manufacturing firm based on the evidence that
other firms have documented achievement by using logistic applications. This does not appear to be
a strong base for making the judgment to form a union with Woodland. However, the business
agreement is a proposal that is worth taking into deliberation, owed to the evidence that the
advantages that would be attained out number the potential obstacles. Risk-taking is one of the
characteristics of a good business endeavor and entrepreneurs. Hence, the proposal is worth trying.
For long-run viability, effective communication is necessary.
It is important to communicate to all festivities involved concerning the possible benefits and
obstacles to the proposal.

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